Buy to Let Mortgage Options fall by 82% in Five Years

09 July 2012 Categories: News

Buy to Let Mortgage Options fall by 82% in Five Years

According to the financial advice website, Business MoneyFacts, the number of buy to let mortgage products on the market today is a staggering 82% lower than the number available prior to the recession, which is taken to have started in 2007. Pre-recession, potential landlords had nearly 2300 buy to let mortgage options to choose from, however as ofJuly 1 2012this number was just 411.

Saying this, the number of options available today is more than double that of three years ago, when just 191 buy to let mortgage products were available on the open market. The average interest rate on buy to let mortgages is also lower today than five years ago by more than 1%.

Mortgage lenders are now starting to see the opportunities offered by the private rental sector though and as a result several new buy to let products are launched each month. This increasing competition between lenders is good news for prospective landlords and it is thought the interest rates will continue to stay low.

Speaking on behalf of Business MoneyFacts, Rachel Springall commented, “Due to the larger deposits required for first-time buyers as well as the strict credit checks, many more people are opting to rent.

“This demand for rental properties has increased competition in the buy to let market, and the continuation of falling interest rates will be welcome news to prospective landlords.”